Oral Answers to Questions

Michael Fabricant Excerpts

Tuesday 27th January 2015 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

3. What assessment he has made of the effects of recent trends in the price of oil on the economy; and if he will make a statement.

[Andrew Percy (Brigg and Goole) (Con)]

5. What assessment he has made of the effect of falling oil prices on households.

[The Chancellor of the Exchequer (Mr George Osborne)]

The fall in the oil price clearly means that certain sectors such as the North sea face real pressure, which the Chief Secretary and I are determined to help them with, but overall this is a good thing for the United Kingdom and for British families. Today’s GDP figures confirm that the recovery is on track, and our plan is protecting Britain from the economic storm with the fastest growth of any major economy in 2014. However, the international climate is getting worse, and with 100 days to go to the election, now is not the time to abandon the plan and return Britain to economic chaos.

[Michael Fabricant]

We have all noticed that we no longer hear about the cost of living crisis. Could my right hon. Friend tell me precisely how the change in oil prices has affected the retail prices index and how that compares with wage inflation?

[Mr Osborne]

Inflation is at 0.5% and wages are growing at three times that rate. If the oil price is fully passed on—and we have put pressure on the petrol and utility companies to do so—British families will on average be £750 better off. If we had accepted the ludicrous price freeze proposed by the Opposition we would have locked in those high oil prices and people would not see the benefit in their utility bills.